Nepra introduces new performance standards for power distribution companies
“The National Electric Power Regulatory Authority (Nepra) has introduced a comprehensive new regulatory framework for electricity distribution companies, replacing performance rules that had remained i…”
The Nepra Performance Standards (Distribution) Regulations, 2026 (PSDR 2026) replace the Performance Standards (Distribution) Rules, 2005 and establish a broader system for evaluating the performance of power distribution companies. Under the new framework, distributors will be assessed not only on electricity supply but also on service reliability, consumer facilities, investment, safety and the use of emerging technologies.
The regulations introduce measurable indicators covering the frequency and duration of power outages, restoration times, handling of consumer complaints, electricity quality, load-shedding, safety standards, investment targets, digitalisation and the integration of distributed energy resources. The framework also covers infrastructure for electric vehicle charging, cybersecurity and transparency, reflecting a wider approach towards monitoring the performance of distribution companies.
A key feature of PSDR 2026 is the introduction of Guaranteed Performance Standards, which focus on services directly experienced by consumers. These include specific requirements for restoring electricity after outages and resolving complaints within defined standards.
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Distribution companies will also be required to inform consumers in advance about planned power interruptions. Industrial and captive power consumers will be subject to additional requirements regarding outage notifications and updates on restoration. The new regulations provide for compensation in specified cases where guaranteed performance standards are not met, giving consumers a direct remedy when prescribed service obligations are breached.
Nepra will also be able to assess performance at different operational levels, including the company, circle, division and sub-division. This is intended to help identify areas where service delivery remains weak instead of relying solely on overall company-level performance figures.
PSDR 2026 also brings load-shedding under a more structured regulatory framework and introduces a wider set of benchmarks for monitoring electricity distribution. The new rules mark a significant shift from the framework introduced in 2005, placing greater emphasis on measurable performance, consumer rights, technological development, safety and accountability.
The effectiveness of the new regulations will ultimately depend on their implementation and whether they lead to more reliable electricity supply and improved services for consumers across the country.
Written by Ahad Raza Mir
Aman-e-Pakistan Senior Journalist & Bureau Reporter
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